Banking Exam Banking Regulations and Compliance 2

Question 1

Under the Community Reinvestment Act (CRA), banks are primarily evaluated on their efforts to meet the credit needs of which population?

Accepted Answer

Low- and moderate-income communities

Answer

The CRA requires banks to help meet the credit needs of all communities they serve, with particular emphasis on low- and moderate-income neighborhoods.

Question 2

Which federal agency is primarily responsible for enforcing the Bank Secrecy Act (BSA)?

Accepted Answer

Financial Crimes Enforcement Network (FinCEN)

Answer

FinCEN, a bureau of the U.S. Treasury Department, is the primary administrator and enforcer of the Bank Secrecy Act.

Question 3

What is the primary purpose of a Suspicious Activity Report (SAR)?

Accepted Answer

To notify regulators of potential money laundering or fraud

Answer

SARs are filed with FinCEN to alert law enforcement to transactions that may involve money laundering, fraud, or other financial crimes.

Question 4

The Volcker Rule, part of the Dodd-Frank Act, prohibits banks from engaging in which activity?

Accepted Answer

Proprietary trading for their own profit

Answer

The Volcker Rule restricts banks from making speculative investments (proprietary trading) that do not benefit their customers.

Question 5

Under Regulation E, what is the maximum liability for a consumer who reports an unauthorized electronic fund transfer within 2 to 60 days after receiving a statement?

Accepted Answer

$500

Answer

Regulation E limits consumer liability to $500 if the unauthorized transfer is reported between 2 and 60 days after the periodic statement is sent.

Banking Exam Practice Test

Banking Exam Practice Test

Banking Exam Banking Regulations and Compliance 2